Stocks recoup most of early losses

NEW YORK, Dec. 27 (UPI) -- U.S. stock markets turned around Thursday, almost returning stocks to break-even, as investors learned of renewed efforts to reach a budget agreement.

The House is set to reconvene Sunday, giving hope the budget impasse can be resolved and the so-called fiscal cliff averted, The Wall Street Journal reported.

The news almost erased the morning's losses, but markets closed in negative territory for the day.

Without a new budget plan in place by Jan. 1, a budget that calls for $500 billion in spending cuts and tax hikes would take effect. This has widely been predicted to be too much of an adjustment for the economic recovery, which some analysts say would turn into a recession should the default budget take effect.

By close of trading Thursday, the Dow Jones industrial average lost 18.28 points or 0.14 percent to 13,096.31. The Nasdaq lost 4.25 points or 0.14 percent to 2,985.91.

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